COALspot.com keeps you connected across the coal world
  • DMO FOR 2020 IS STILL BEING EVALUATED. BUT, THE DMO VOLUME REMAINS 25 PERCENT OF THE TOTAL COAL PRODUCTION - ESDM
  • NOV 2019 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS INCLUDING POWER PRODUCERS FIXED AT US$ 66.27 A TON
  • SHARE YOUR CORPORATE COAL & SHIPPING NEWS WITH US - NEWS@COALSPOT.COM
  • WE WELCOME ARTICLE SUBMISSIONS FROM EXPERTS IN THE AREAS OF COAL, MINING, SHIPPING, ETC.

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Tuesday, 17 September 19
THE DRY BULK FREIGHT MARKET IS ALREADY ON A DOWNWARD CORRECTION - ALLIED
Allied LogoHere we are again, just a breath before the final quarter of the year. Under typical circumstances and on the basis of what we have seen during the summer months, one would be (theoretically) extra bullish in terms of what to expect for the final part of 2019, said Thomas Chasapis, Research Analyst of Allied shipping Research in his latest report.

However, can the current positive dynamics be sustained over the next three months? According to Thomas Chasapis many views have been expressed in respect to the true state of the dry bulk market. At this point, it seems as though the most vital question is as to whether the market has any direction at all (with the hope of some sort rebalancing soon), or whether the recent summer trends in the freight market have created ample artificial noise in a market that is currently stagnant.

Thomas Chasapis further noted, the dry bulk freight market is already on a downward correction, hardly a surprise, given that the balance point of the market does not seem to be by any measure with a BDI of above 2,500bp (at least for now). This has been expressed emphatically in the paper market, with current forward curves indicating massive corrections moving forward. Notwithstanding this, future contracts for the BCI-5TC average for the final quarter have been formed at slightly above US$ 25,000/day. It is true that this level is an extreme discounted when compared to where the current freight market is at, but when we consider that we are talking about a 3-month average figure which is above US$ 10,000/day more than the year-to-date average.

Just remember what we were seeing for similar contracts exactly one year earlier and at what levels the market closed off the final three months of 2018. So, are we truly faced with a pessimistic view right now? The reality is slightly more ambiguous as we shift the focus over to the macroeconomic indicators. Y-o-y massive corrections have brought with them a huge wave of negativism towards the market.

According to Thomas Chasapis, forward contracts for 2020 felt a correction of around US$ 5,000/day, while 2021 and the years beyond that were a little less so effected though still noting significant corrections. All-in-all, even under these conditions, there are many positive indicators to be seen as well. If the current forward curve is "right", the freight market will be on time to catch-up and finish the year with an average of at least on par with that of 2018 (if not higher). Despite the impressive recovery, many will probably still view the year as a step back. However, it is interesting to note how this is translated when we assess asset prices into the mix? Taking as general indication the value of a 5yr old Capesize vessel, year-to-date the average figure has eased back by roughly 11%, while, given the overall stability of second hand values, we can expect this discount to remain relatively the same during the remaining months of the year. So, in terms of an earnings to price ratio analysis, this would suggest that the market is in a much better state (y-o -y) in relative terms. However, things change when we compare this to the risk profile involved. At this point, the excessive volatility levels noted in freight rates would point to the current prices being in theory fairly "expensive".
 
This however is only partially true, as volatility measures are agnostic to any market direction and only measure the difference from the average (either on the positive or the negative side). Given the aggressive upward movement in freight rates as of late, the standard deviation inevitably gives an exaggerated result. However, when you take into consideration what we have been seeing in the futures market, you may well find further ground to support the indication that has been given from the earnings to price ratio side, Thomas Chasapis concluded.


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Friday, 15 November 19
RISING ENERGY DEMAND IN SOUTHEAST ASIA TO BE MET AND SUPPORTED BY COAL - WORLD COAL
Last week the International Energy Agency (IEA) released its semi-annual Southeast Asia Energy Outlook report which outlines the latest insights in ...


Thursday, 14 November 19
EIA EXPECTS U.S. STEAM COAL EXPORTS TO FACE INCREASING COMPETITION FROM EASTERN EUROPEAN SOURCES
EIA expects total U.S. coal production in 2019 to total 698 million short tons (MMst), an 8% decrease from the 2018 level of 756 MMst. The decline ...


Wednesday, 13 November 19
INDONESIAN NOVEMBER COAL PRICE REFERENCE LOGS FIRST GAIN SINCE AUGUST
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised up the benchmark price of Indonesian thermal co ...


Wednesday, 13 November 19
SHIPPING MARKET INSIGHT - INTERMODAL
The improvements seen in the dry bulk market during the unexpectedly strong Q3 brought enthusiasm and optimism for a last quarter rally. Indeed as ...


Tuesday, 12 November 19
COAL IMPORTS AT MAJOR PORTS SLIP 18 PC TO 51 MT IN APRIL-OCTOBER - ECONOMIC TIMES
The Indian Ports Association (IPA), which maintains cargo data handled by these 12 ports, in its recent report, said "percentage variation fro ...


   1 2 3 4 5   
Showing 6 to 10 news of total 5587
News by Category
Popular News
 
Total Members : 26,618
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • TANGEDCO India
  • Tamil Nadu electricity Board
  • Central Java Power - Indonesia
  • World Coal - UK
  • Globalindo Alam Lestari - Indonesia
  • Platou - Singapore
  • Africa Commodities Group - South Africa
  • Sindya Power Generating Company Private Ltd
  • Carbofer General Trading SA - India
  • Maruti Cements - India
  • Gujarat Mineral Development Corp Ltd - India
  • DBS Bank - Singapore
  • Samsung - South Korea
  • Trasteel International SA, Italy
  • The India Cements Ltd
  • Shree Cement - India
  • Renaissance Capital - South Africa
  • Britmindo - Indonesia
  • Electricity Generating Authority of Thailand
  • Jindal Steel & Power Ltd - India
  • Independent Power Producers Association of India
  • Larsen & Toubro Limited - India
  • Sical Logistics Limited - India
  • Vedanta Resources Plc - India
  • Argus Media - Singapore
  • PNOC Exploration Corporation - Philippines
  • Gujarat Electricity Regulatory Commission - India
  • OPG Power Generation Pvt Ltd - India
  • Thailand Anthracite
  • European Bulk Services B.V. - Netherlands
  • Aditya Birla Group - India
  • Indorama - Singapore
  • APGENCO India
  • Mercator Lines Limited - India
  • Platts
  • Xstrata Coal
  • MS Steel International - UAE
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Attock Cement Pakistan Limited
  • Core Mineral Indonesia
  • Barasentosa Lestari - Indonesia
  • Pendopo Energi Batubara - Indonesia
  • HSBC - Hong Kong
  • Directorate General of MIneral and Coal - Indonesia
  • Coal India Limited
  • Economic Council, Georgia
  • Parry Sugars Refinery, India
  • Moodys - Singapore
  • Ambuja Cements Ltd - India
  • Tata Power - India
  • Kumho Petrochemical, South Korea
  • Wilmar Investment Holdings
  • Ministry of Finance - Indonesia
  • Freeport Indonesia
  • globalCOAL - UK
  • Aboitiz Power Corporation - Philippines
  • Asian Development Bank
  • Marubeni Corporation - India
  • South Luzon Thermal Energy Corporation
  • Interocean Group of Companies - India
  • Power Finance Corporation Ltd., India
  • Rashtriya Ispat Nigam Limited - India
  • GAC Shipping (India) Pvt Ltd
  • Lafarge - France
  • Coal Orbis AG
  • Maybank - Singapore
  • Orica Mining Services - Indonesia
  • Asmin Koalindo Tuhup - Indonesia
  • OCBC - Singapore
  • Formosa Plastics Group - Taiwan
  • Chettinad Cement Corporation Ltd - India
  • Planning Commission, India
  • KPCL - India
  • bp singapore
  • ANZ Bank - Australia
  • Coastal Gujarat Power Limited - India
  • JPower - Japan
  • Sojitz Corporation - Japan
  • Vizag Seaport Private Limited - India
  • Siam City Cement - Thailand
  • ETA - Dubai
  • BRS Brokers - Singapore
  • Coeclerici Indonesia
  • Star Paper Mills Limited - India
  • Credit Suisse - India
  • Edison Trading Spa - Italy
  • Mechel - Russia
  • Rio Tinto Coal - Australia
  • Global Coal Blending Company Limited - Australia
  • Thai Mozambique Logistica
  • Indonesia Power. PT
  • Bukit Makmur.PT - Indonesia
  • Barclays Capital - USA
  • India Bulls Power Limited - India
  • PLN - Indonesia
  • Bangkok Bank PCL
  • Medco Energi Mining Internasional
  • Riau Bara Harum - Indonesia
  • Mintek Dendrill Indonesia
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Kohat Cement Company Ltd. - Pakistan
  • CNBM International Corporation - China
  • Ind-Barath Power Infra Limited - India
  • Latin American Coal - Colombia
  • IOL Indonesia
  • McConnell Dowell - Australia
  • Lanco Infratech Ltd - India
  • Adani Power Ltd - India
  • The State Trading Corporation of India Ltd
  • Karaikal Port Pvt Ltd - India
  • Oldendorff Carriers - Singapore
  • Directorate Of Revenue Intelligence - India
  • Bukit Asam (Persero) Tbk - Indonesia
  • Indonesian Coal Mining Association
  • Qatrana Cement - Jordan
  • Kobexindo Tractors - Indoneisa
  • Arch Coal - USA
  • LBH Netherlands Bv - Netherlands
  • Sinarmas Energy and Mining - Indonesia
  • Indian Oil Corporation Limited
  • Australian Coal Association
  • Merrill Lynch Bank
  • Total Coal South Africa
  • New Zealand Coal & Carbon
  • PetroVietnam
  • Bank of China, Malaysia
  • Siam City Cement PLC, Thailand
  • Gresik Semen - Indonesia
  • Cement Manufacturers Association - India
  • Antam Resourcindo - Indonesia
  • UBS Singapore
  • Bayan Resources Tbk. - Indonesia
  • VISA Power Limited - India
  • Metalloyd Limited - United Kingdom
  • Pinang Coal Indonesia
  • Orica Australia Pty. Ltd.
  • Georgia Ports Authority, United States
  • Heidelberg Cement - Germany
  • KOWEPO - South Korea
  • Kalimantan Lumbung Energi - Indonesia
  • Humpuss - Indonesia
  • Indogreen Group - Indonesia
  • MEC Coal - Indonesia
  • SASOL - South Africa
  • Thomson Reuters GRC
  • Vitol - Bahrain
  • CESC Limited - India
  • PLN Batubara - Indonesia
  • GHCL Limited - India
  • GB Group - China
  • Indian School of Mines
  • Mitra SK Pvt Ltd - India
  • Rudhra Energy - India
  • Uttam Galva Steels Limited - India
  • PetroVietnam Power Coal Import and Supply Company
  • Idemitsu - Japan
  • Kartika Selabumi Mining - Indonesia
  • Indika Energy - Indonesia
  • Meenaskhi Energy Private Limited - India
  • Cardiff University - UK
  • Indo Tambangraya Megah - Indonesia
  • The University of Queensland
  • Ernst & Young Pvt. Ltd.
  • TNB Fuel Sdn Bhd - Malaysia
  • Altura Mining Limited, Indonesia
  • Samtan Co., Ltd - South Korea
  • Alfred C Toepfer International GmbH - Germany
  • Mitsui
  • Ministry of Transport, Egypt
  • Miang Besar Coal Terminal - Indonesia
  • Gupta Coal India Ltd
  • Billiton Holdings Pty Ltd - Australia
  • Binh Thuan Hamico - Vietnam
  • Bahari Cakrawala Sebuku - Indonesia
  • Noble Europe Ltd - UK
  • Krishnapatnam Port Company Ltd. - India
  • Madhucon Powers Ltd - India
  • Wood Mackenzie - Singapore
  • ICICI Bank Limited - India
  • Makarim & Taira - Indonesia
  • NTPC Limited - India
  • Deloitte Consulting - India
  • WorleyParsons
  • Salva Resources Pvt Ltd - India
  • CoalTek, United States
  • Surastha Cement
  • TNPL - India
  • Ince & co LLP
  • J M Baxi & Co - India
  • Commonwealth Bank - Australia
  • Malco - India
  • Chamber of Mines of South Africa
  • SRK Consulting
  • Inco-Indonesia
  • Port Waratah Coal Services - Australia
  • Leighton Contractors Pty Ltd - Australia
  • Central Electricity Authority - India
  • IMC Shipping - Singapore
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • GMR Energy Limited - India
  • Runge Indonesia
  • Simpson Spence & Young - Indonesia
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Tanito Harum - Indonesia
  • Coaltrans Conferences
  • Coal and Oil Company - UAE
  • Kobe Steel Ltd - Japan
  • Petrochimia International Co. Ltd.- Taiwan
  • NALCO India
  • RBS Sempra - UK
  • Sree Jayajothi Cements Limited - India
  • Mercuria Energy - Indonesia
  • Clarksons - UK
  • Arutmin Indonesia
  • Berau Coal - Indonesia
  • Borneo Indobara - Indonesia
  • White Energy Company Limited
  • Petrosea - Indonesia
  • Malabar Cements Ltd - India
  • Intertek Mineral Services - Indonesia
  • ASAPP Information Group - India
  • Kapuas Tunggal Persada - Indonesia
  • Reliance Power - India
  • KEPCO - South Korea
  • SGS (Thailand) Limited
  • Maersk Broker
  • Ceylon Electricity Board - Sri Lanka
  • Inspectorate - India
  • UOB Asia (HK) Ltd
  • JPMorgan - India
  • Enel Italy
  • Deutsche Bank - India
  • Karbindo Abesyapradhi - Indoneisa
  • Price Waterhouse Coopers - Russia
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Essar Steel Hazira Ltd - India
  • Maheswari Brothers Coal Limited - India
  • Cigading International Bulk Terminal - Indonesia
  • Cosco
  • Glencore India Pvt. Ltd
  • IEA Clean Coal Centre - UK
  • Energy Link Ltd, New Zealand
  • Sucofindo - Indonesia
  • Jorong Barutama Greston.PT - Indonesia
  • Mjunction Services Limited - India
  • Savvy Resources Ltd - HongKong
  • Banpu Public Company Limited - Thailand
  • Holcim Trading Pte Ltd - Singapore
  • Sakthi Sugars Limited - India
  • IHS Mccloskey Coal Group - USA
  • PTC India Limited - India
  • Bhushan Steel Limited - India
  • Grasim Industreis Ltd - India
  • Ministry of Mines - Canada
  • Thriveni
  • IBC Asia (S) Pte Ltd
  • Bulk Trading Sa - Switzerland
  • Cargill India Pvt Ltd
  • Thiess Contractors Indonesia
  • CCIC - Indonesia
  • Standard Chartered Bank - UAE
  • Xindia Steels Limited - India
  • EIA - United States
  • Eastern Coal Council - USA
  • Permata Bank - Indonesia
  • Peabody Energy - USA
  • SMG Consultants - Indonesia
  • Adaro Indonesia
  • Tata Chemicals Ltd - India
  • Jaiprakash Power Ventures ltd
  • Infraline Energy - India
  • Singapore Mercantile Exchange
  • Fearnleys - India
  • KPMG - USA
  • Agrawal Coal Company - India
  • Vijayanagar Sugar Pvt Ltd - India
  • Kideco Jaya Agung - Indonesia
  • Thermax Limited - India
  • GVK Power & Infra Limited - India
  • Bank of America
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Cemex - Philippines
  • Coalindo Energy - Indonesia
  • ACC Limited - India
  • Dalmia Cement Bharat India
  • World Bank
  • Vale Mozambique
  • Asia Cement - Taiwan
  • Merrill Lynch Commodities Europe
  • Geoservices-GeoAssay Lab
  • Parliament of New Zealand
  • London Commodity Brokers - England
  • The Treasury - Australian Government
  • U S Energy Resources
  • Straits Asia Resources Limited - Singapore
  • McKinsey & Co - India
  • Minerals Council of Australia
  • EMO - The Netherlands
  • Goldman Sachs - Singapore
  • PowerSource Philippines DevCo
  • Bangladesh Power Developement Board
  • Videocon Industries ltd - India
  • Toyota Tsusho Corporation, Japan
  • Russian Coal LLC
  • Gujarat Sidhee Cement - India
  • Bhoruka Overseas - Indonesia
  • Eastern Energy - Thailand
  • Posco Energy - South Korea
  • GNFC Limited - India
  • Mitsubishi Corporation
  • Neyveli Lignite Corporation Ltd, - India
  • Manunggal Multi Energi - Indonesia
  • Japan Coal Energy Center
  • Shenhua Group - China
  • CIMB Investment Bank - Malaysia
  • TeaM Sual Corporation - Philippines
  • SUEK AG - Indonesia
  • Bukit Baiduri Energy - Indonesia
  • Maharashtra Electricity Regulatory Commission - India
  • Romanian Commodities Exchange
  • Bhatia International Limited - India
  • Anglo American - United Kingdom
  • Bharathi Cement Corporation - India
  • Timah Investasi Mineral - Indoneisa
  • Australian Commodity Traders Exchange
  • Jatenergy - Australia
  • BNP Paribas - Singapore
  • International Coal Ventures Pvt Ltd - India
  • Kaltim Prima Coal - Indonesia
  • ING Bank NV - Singapore
  • Panama Canal Authority